Gartner Research

Top 10 Reasons Why Benchmarks Fail in Outsourcing Deals

Published: 23 March 2007

ID: G00147145

Analyst(s): Helen Huntley

Summary

Benchmarks in outsourcing contracts are prone to failure, largely due to the lack of clarity about timing, funding, metrics, methodology and what actions will be taken as a result of the analysis. We provide the top reasons why benchmarks fail in outsourcing and how to avoid these failures.

Table Of Contents
  • Overview
  • 1. Failure to Describe Benchmark Coverage Areas
  • 2. Failure to Describe When the Benchmark(s) Will Be Executed
  • 3. Failure to Stipulate How Often Benchmark(s) Will Be Conducted
  • 4. Failure to Define What Calculated Metrics Will Be Used for Comparison
  • 5. Failure to Stipulate Benchmarking Methodology and Provider Selection Criteria
  • 6. Failure to Define How Peers Will Be Selected for Comparison
  • 7. Failure to Identify Realistic Benchmarking Comparisons
  • 8. Failure to Stipulate How Benchmarks Will Be Managed and Who Will Do the Data Collection
  • 9. Failure to Define Who Will Fund the Benchmark(s)
  • 10. Failure to Define How Benchmarking Results Will Be Used in the Outsourcing Deal

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.